Bitcoin is in a difficult situation right now. The price has fallen sharply from the $45k resistance, and this has pushed it below $40k again. Therefore, it is difficult to say whether the recovery would be soon. So, in the short term, I am bearish about the price action. In fact, many are speculating that we might break $30k and tread lower to $22k. After all this, it is still the best investment of the last decade and might very well be for the next one, for there is a way that Bitcoin could reach $165k before reaching $22k.
Bitcoin top at $165k
Everyone is talking about Bitcoin retesting the 2017 top at $20k, which makes it more unlikely to happen. Where the sentiment becomes too bearish, the price often rises up and vice versa in the other case. If we could just move above $40k, all this bearish sentiment would subside because of the importance of the support. Even right now, there is a strong resistance between the $36k-$38k range, which could help the price stabilize at these levels.
Coming to the metric, an analyst DeFeye pointed out that the price of Bitcoin has never broken below the 200 week SMA even in a bear market. Generally, BTC is said to be in a bear market when there is at least 85% correction which from the $69k top would pit BTC below the 200 week SMA. This will invalidate a very long-term trend which is very unlikely.
So, keeping in mind the previous cycles, the price of BTC could reach $165k before $22k during the correction. It also clears the air that we have entered a deep bear market because the price has been stuck at one level for a while. It just seems that Bitcoin is gearing up for the next rally.
Buy the dip?
The $36k-$38k range looks like a good spot to enter the market. Don’t go all in and try to DCA your holdings in case the supports break and the price falls lower. However, I am expecting that price won’t go lower than $34k like in previous times. For altcoins, things look terrible and for those who are new to the market, investing in the top 10-20 altcoins is not the wrong time now. Do your own research before investing, and always choose a project that you can hold long term.
Do you think Bitcoin could reach $165k in the next 1-2 years? And if yes, what will be the bottom before it starts moving up? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.